Gran Tierra Energy Inc. Announces New-Country Entry Into Ecuador

12/03/2019 10:09pm

UK Regulatory (RNS & others)

TIDMGTE
CALGARY, Alberta, March 12, 2019 (GLOBE NEWSWIRE) -- Gran Tierra Energy
Inc. ("Gran Tierra" or the "Company") (NYSE
American:GTE)(TSX:GTE)(LSE:GTE) is pleased to announce that, based on
preliminary results, the Company has made a new-country entry into
Ecuador through the submission of winning bids for a total of three
blocks, which were offered by the Ministerio de Energia y Recursos
Naturales No Renovables ("MERNR") in today's Ronda Intracampos. The
three blocks are located in the Oriente Basin and are approximately
140,000 acres in total area, creating a contiguous acreage position
extending from Gran Tierra's existing assets in the Putumayo Basin in
Colombia. Final award of these blocks is contingent upon regulatory
approvals and the execution of the Participation Contracts (the
"Contracts").
Key Highlights
-- Establishes the Company as one of the top landholders in the play trend
which extends from the Putumayo Basin in Colombia through to the Oriente
Basin in Ecuador; the Putumayo and Oriente Basins are the same geological
basin, with different names due to the international border between
Colombia and Ecuador
-- Further strengthens and consolidates Gran Tierra's position in what the
Company considers is a conventional oil resource fairway; Ecuador's Napo
Formation is equivalent to the Villeta Formation in the Putumayo Basin
and has the same multi-zone potential in carbonate and sandstone
reservoirs
-- Gran Tierra has secured 100% working interest ("WI") and operatorship in
the Charapa Block, Chanangue Block and Iguana Block (collectively, the
"Blocks"), which increases Gran Tierra's gross acreage position in the
conventional resource plays in Ecuador and Colombia from 1.2 million to
over 1.3 million gross acres
-- Gran Tierra's winning bids consisted of a work program bid by block,
including the drilling of a total of 14 exploration wells over four years
across the Blocks, and the Company's share of revenues which is tied to
the Oriente Blend Oil Price and to production volumes; the Contracts are
a sliding scale, with the Company take ranging from 87.5% at US$30 per
barrel to 40% at US$120 per barrel; there is no consideration payable
upon the signing of the Contracts and cash outlays begin with the
commencement of the work program
-- Gran Tierra expects to commence its Ecuador exploration drilling program
in 2020 with no anticipated changes to the Company's previously issued
2019 guidance; this new exploration program is expected to be fully
funded through the Company's forecasted net cash provided by operating
activities
-- Through the preliminary award of the Charapa Block, Gran Tierra
establishes a proven position in the B-Limestone play trend; the Charapa
field has had historic oil production from the B-Limestone over a 17-year
period
-- Contiguous acreage extending from Colombia's Putumayo Basin into
Ecuador's Oriente Basin provides Gran Tierra with the ability to
potentially construct strategic gathering infrastructure on 100%-operated
acreage, which would allow the Company to potentially utilize the
existing infrastructure in Ecuador
Gary Guidry, President and Chief Executive Officer of Gran Tierra,
commented "We are excited about our new-country entry into Ecuador, an
achievement which aligns with Gran Tierra's strategy -- focusing on
proven conventional hydrocarbon basins, with access to established
infrastructure, in a strong stable economic environment, combined with a
highly competitive fiscal regime. The Blocks would extend our dominant
position in Colombia's Putumayo Basin into Ecuador's Oriente Basin, with
assets that are highly complementary to our existing land base. Ecuador
represents a unique opportunity in terms of scale for Gran Tierra. With
our winning bids for the Blocks, we believe we are acquiring significant
future potential exploration upside which could enhance our long-term
growth strategy and be an excellent fit with Gran Tierra's diverse
reserves and resources base in Colombia."
Maps
Below is a link to a map of the preliminarily awarded Blocks to Gran
Tierra.
Link 1: Gran Tierra's New Land Position in the Oriente Basin
http://ml.globenewswire.com/Resource/Download/c42f62e6-7183-424f-9c61-edbe449a65dc
Contact Information
For investor and media inquiries please contact:
Gary Guidry, Chief Executive Officer
Ryan Ellson, Chief Financial Officer
Rodger Trimble, Vice President, Investor Relations
+1-403-265-3221
info@grantierra.com
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc. together with its subsidiaries is an independent
international energy company focused on oil and natural gas exploration
and production in Colombia and Ecuador. The Company is focused on its
existing portfolio of assets in Colombia and Ecuador and will pursue new
growth opportunities throughout Colombia and South America, leveraging
our financial strength. The Company's common shares trade on the NYSE
American, Toronto Stock Exchange and London Stock Exchange under the
ticker symbol GTE. Additional information concerning Gran Tierra is
available at www.grantierra.com. Information on the Company's website
does not constitute a part of this press release. Investor inquiries may
be directed to info@grantierra.com or (403) 265-3221.
Gran Tierra's Securities and Exchange Commission filings are available
on the Securities and Exchange Commission website at http://www.sec.gov
and on SEDAR at http://www.sedar.com and UK regulatory filings are
available on the National Storage Mechanism website at
www.morningstar.co.uk/uk/nsm.
Forward Looking Statements and Legal Advisories:
This press release contains opinions, forecasts, projections, and other
statements about future events or results that constitute
forward-looking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and financial outlook and forward
looking information within the meaning of applicable Canadian securities
laws (collectively, "forward-looking statements"). The use of the words
"expect", "plan", "intend", "will" and "believes", derivations thereof
and similar terms identify forward-looking statements. In particular,
but without limiting the foregoing, this press release contains
forward-looking statements regarding: our ability to complete the
Contracts, the anticipated benefits of the Blocks and the Contracts to
Gran Tierra and its shareholders, our expected timeframes for obtaining
environmental and other regulatory approvals, our expected timeframes
for commencing drilling, our ability to construct gathering
infrastructure or access pipelines or other transport facilities, and
any expected production from the Blocks. The forward-looking statements
contained in this press release reflect several material factors and
expectations and assumptions of Gran Tierra including, without
limitation, that Gran Tierra will continue to conduct its operations in
a manner consistent with its current expectations, the accuracy of
testing and production results and seismic data, pricing and cost
estimates (including with respect to commodity pricing and exchange
rates), rig availability, the effects of waterflood and the general
continuance of assumed operational, regulatory and industry conditions
in Ecuador, and the ability of Gran Tierra to execute its business and
operational plans in the manner currently planned.
Among the important factors that could cause actual results to differ
materially from those indicated by the forward-looking statements in
this press release are: sustained or future declines in commodity prices
and potential resulting future impairments and reductions in proved
reserve quantities and value; Gran Tierra's operations are located in
South America, and unexpected problems can arise due to guerrilla
activity; technical difficulties and operational difficulties may arise
which impact the production, transport or sale of our products;
geographic, political and weather conditions can impact the production,
transport or sale of our products; the risk that current global economic
and credit conditions may impact oil prices and oil consumption more
than Gran Tierra currently predicts; the ability of Gran Tierra to
execute its business plan; the risk that unexpected delays and
difficulties in developing properties may occur; the timely receipt of
regulatory or other required approvals for our activities; the failure
of exploratory drilling to result in commercial wells; unexpected delays
due to the limited availability of drilling equipment and personnel; the
risk that oil prices could continue to fall, or current global economic
and credit market conditions may impact oil prices and oil consumption
more than Gran Tierra currently predicts, which could cause Gran Tierra
to further modify its strategy and capital spending program; and the
risk factors detailed from time to time in Gran Tierra's periodic
reports filed with the Securities and Exchange Commission, including,
without limitation, under the caption "Risk Factors" in Gran Tierra's
Annual Report on Form 10-K filed February 27, 2019. These filings are
available on the Securities and Exchange Commission website at
http://www.sec.gov and on SEDAR at www.sedar.com.
The forward-looking statements contained in this press release are based
on certain assumptions made by Gran Tierra based on management's
experience and other factors believed to be appropriate. Gran Tierra
believes these assumptions to be reasonable at this time, but the
forward-looking statements are subject to risk and uncertainties, many

of which are beyond Gran Tierra's control, which may cause actual
results to differ materially from those implied or expressed by the
forward looking statements. All forward-looking statements are made as
of the date of this press release and the fact that this press release
remains available does not constitute a representation by Gran Tierra
that Gran Tierra believes these forward-looking statements continue to
be true as of any subsequent date. Actual results may vary materially
from the expected results expressed in forward-looking statements. Gran
Tierra disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by applicable.

(END) Dow Jones Newswires

March 12, 2019 18:09 ET (22:09 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.

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